Organisation and management
Introduction
Mergers and acquisitions is the most common means of entry into new market. If two or several businesses bond, it is referred to as a merger. After merging all arrears, assets and accountabilities of the two or more businesses come together and in most cases, the old names are dropped and the new company renamed a new name. On the other side, an acquisition is when a particular company purchases another one by either purchasing its stock or the assets. It may either be publicly owned or private. After the acquisition, the purchasing company may opt take in the other company or let it operate on its own (Fred, 2004)
The evidence of success from such ventures
A number of ways are used to assess success though it largely depends on the deciding factors. Nevertheless, one of the assessment ways entails the declaration of the merging or acquisition usually between 3 to 11 days. This is undertaken so as to assess the prospect of the value alteration after the acquisition. The success assessments focus on the alteration in the worthiness of the acquirer and the target. Other deciding factors that determine the success of such ventures are : full and plain goals, visions and range of the venture; the communication and the dividing of data; the advancement of the scheme sketch ;the discussions with clients and their approval; the proficiency of the team associates and their dedication; scheduling of the resource; the supervision of the risk; and the supervision of time and absolute confidentiality.
There have been researches that the success of the company should be measured by periodical variables, charge and the range. There have been other factors that shave been added such as the contentment of the stakeholder, the gains of the stakeholder community, the gains of the company and the accomplishment of the commercial purpose.
The strategic implications for organisations
There is an adage that goes, “an ounce of prevention is better than a pound of cure.” Before the companies or the organisations consider the merger and acquisition ventures they need first to consider and reconsider a few factors. Fist and the foremost, the organisation should be aware of the risk of the client foundation that they are purchasing: to understand and visualize the future impact and the dependability of the clients, the organisation needs first to investigate the history of the other company (Robert, 2004). Anyway, it is that if you don’t know where you are coming from, you also don’t know where you are going to. Second, the organisation takes the remarks from the clients: by gathering the remarks from the customer base, the company assesses the satisfactions or the dissatisfactions from the customers. However, the gathering of the remarks should be done by another party rather than the purchasing company so as to keep in low waters. The company that is merging with or purchasing the other need to know the vital places that the other company is feeble at so as to evaluate whether it is good for the acquisition (Edwin, 2008)
Conclusion
A merger is whereby two or more companies consolidate. An occasion where one company buys the other one out is called an acquisition. The success of such ventures depends on a few deciding factors such as assessing the change value by declaring the acquisition after a period of three to eleven days; the communication and sharing of information, risk management, the progress of the scheme plan and the satisfaction of the clients. The strategic implications include: investing the history of the other company, taking the remarks from the customers and assessing the vulnerability of the company.
References
Edwin, M. (2008). Mergers and acquisitions:a step by step legal and practical guide. New Jersey: Jonh Wiley and Sons.
Fred, W. (2004). Mergers & Acquisitions. New York: McGraw-Hill Proffesional.
Robert, B. (2004). Applied mergers and acquisitions. New Jersey: John Wiley and Sons.